An energy expert has argued that crude oil and natural gas will continue to play a critical role in the global economy for decades, despite growing investments in renewable energy and worldwide efforts to reduce carbon emissions.
Speaking at the 4th Annual Distinguished Lecture of the Nigerian Society of Engineers, Ilorin Branch, energy consultant Dan Kunle said predictions that oil would soon become irrelevant are unrealistic, noting that petroleum products remain indispensable to modern industry and everyday life.
The event, which brought together engineers, industry stakeholders, policymakers, and business leaders, focused on the future of Nigeria’s energy sector and the role of engineering in driving sustainable economic development.
According to Kunle, while renewable energy technologies such as solar, wind, and electric mobility are expanding rapidly, hydrocarbons continue to provide the foundation for transportation, manufacturing, petrochemicals, pharmaceuticals, plastics, fertilizers, construction materials, and thousands of industrial products used around the world.
He explained that even as countries pursue cleaner energy sources, global demand for oil and gas is expected to remain significant because many industries still depend heavily on petroleum-based products and feedstocks that currently have limited large-scale alternatives.
The energy expert warned that Nigeria’s greatest challenge is not the global energy transition itself but the country’s inability to fully harness its abundant natural resources for industrial and economic transformation. Despite possessing substantial crude oil reserves and one of the largest natural gas deposits in Africa, Nigeria continues to grapple with energy shortages, infrastructure deficits, unemployment, and low industrial output.
He stressed that natural resources only become valuable when they are effectively developed, processed, and transformed into products that create jobs and generate wealth. According to him, continued investment in exploration, reserve replacement, refining, and industrial infrastructure remains essential if Nigeria is to maximize the benefits of its hydrocarbon resources.
Kunle urged policymakers to move beyond the traditional model of exporting crude oil and instead prioritize local refining, petrochemical production, manufacturing, and value-added industries capable of generating higher economic returns. He noted that every stage of resource processing creates additional opportunities for employment, technology transfer, industrial growth, and government revenue.
Highlighting the importance of domestic industrialization, he cited the Dangote Refinery and Petrochemical Complex as an example of how large-scale investments can transform raw resources into a diversified industrial ecosystem. According to him, integrated projects that combine refining, fertilizer production, petrochemicals, logistics, and supporting infrastructure can reduce imports, strengthen local supply chains, and create significant economic opportunities.
The expert also called for stronger support for indigenous investors willing to undertake major industrial projects. He said government policies should encourage long-term investments in resource processing, manufacturing, transportation infrastructure, and energy development to accelerate economic diversification.
Looking ahead, Kunle suggested that Nigeria should increasingly position itself as a gas-powered economy, noting that the country’s estimated 210 trillion cubic feet of natural gas reserves present enormous opportunities for electricity generation, fertilizer manufacturing, petrochemical industries, and broader industrial expansion.
While acknowledging the global push toward cleaner energy, he maintained that Africa’s development needs differ from those of advanced economies. He argued that many African countries still require affordable and reliable energy sources to drive industrialization, improve living standards, and support economic growth.
Industry observers note that the debate over the future of oil has intensified in recent years as governments and businesses invest heavily in renewable technologies. However, many experts believe that the energy transition will be gradual rather than immediate, with oil, gas, and renewable energy likely to coexist for several decades.
The lecture concluded with calls for greater collaboration among government, industry, engineers, and investors to ensure Nigeria fully benefits from its natural resource wealth before global energy markets undergo further transformation. Participants agreed that strategic investments, innovation, and effective policy implementation will be crucial to securing the country’s long-term energy and economic future.
